Hospital Chain To Acquire Imc

July 19, 1986|BY KEN CUMMINS and M. ANTHONY LEDNOVICH, Staff Writers

MIAMI -- Humana Inc., the national hospital chain famed for artificial heart transplants, announced Friday it was acquiring International Medical Centers, the state`s largest health maintenance organization, which has been beset with serious financial problems and state and federal investigations.

The financial details of Humana`s acquisition of IMC and its Gold Plus Plan, which boasts revenues in excess of $400 million and more than 184,000 patients, were not disclosed.

The surprise announcement, made during a late-afternoon news conference, capped at least a month of serious negotiations that had appeared to break down earlier this week, according to state and federal regulators. The negotiations had resumed again on Friday morning.

``We believe today`s announcement is a remarkable accomplishment in South Florida,`` said David A. Jones, chairman and chief executive officer of Humana Inc. ``We believe the outgrowth will be tremendously positive and result in low-cost care for the elderly,``

Concerning IMC`s problems with the federal Medicare regulators, the FBI and the Florida Department of Insurance and numerous lawsuits, Jones said, ``We have talked with all of the parties involved.``

``I think we will all work together to satisfy all the regulatory bodies, and more importantly, satisfy all the customers,`` he said.

Jones said Miguel Recarey Jr. would remain as IMC`s chief executive for at least a year. But neither man would comment on whether Recarey was retaining any financial interest in the company he created and turned into the country`s largest HMO for Medicare patients.

``We don`t plan any drastic changes. Not the name, nothing. The changes that will be planned will be better care, service, physicians and facilities for our customers,`` Jones said.

The negotiations were being watched by members of Congress as well as the Health Care Financing Administration and the Florida Department of Insurance, both of which have regulatory authority over IMC. The final agreement between IMC and Humana must be approved by Florida Insurance Commissioner Bill Gunter.

Federal officials refused to comment publicly on the sale of IMC, but privately they had been expressing hope for the past two days that IMC would agree to a buyout.

Rep. Dan Mica, IMC`s harshest critic in Congress, called the sale to Humana ``a complete saving grace for the consumers.``

Mica, D-Lake Worth, said that when Humana officials contacted him recently concerning IMC, he told them he would not support any joint venture with IMC that did not result in a change of management. But Mica said he also pledged to be supportive of any company that bought IMC.

Mica said HCFA officials and state insurance regulators ``have all tended to feel that a clean buyout would be the best way out for the consumers and all concerned.``

According to Humana spokesman George Atkins, Recarey originally wanted to retain control of his organization and only offered to sell 40 percent. Earlier this year, Reacarey had been asking $300 million for the sale of IMC, and is known to have turned down an offer in the neighborhood of $200 million.

Included in the acquisition is the 352-bed Miami General Hospital.

Humana, headquartered in Louisville, Ky., had revenues of $2.9 billion in 1985. The company operates a chain of 83 hospitals, including 17 in Florida and three abroad.

Marjorie Obrenst, a health care industry analyst with the Wall Street firm of Kidder Peabody, said that ``in general, it would make sense for Humana to get into a Medicare HMO.``

``Their hospital occupancy rate has been dropping the last two years, and they`re losing money if they don`t have someone in those beds,`` Obrenst said.

Humana currently operates an HMO known as Humana Care Plus, which has 200,000 members in Florida and 625,000 nationwide. But the group insurance plan has been losing money and contributed to Humana`s recent drop in quarterly earnings, the first such drop in 15 years.